The Hindu Business Line : Global Hospitals to invest Rs 500 cr in expansion

Funding strategy
Asked on the strategy to raise necessary funds, Mr Ravindranath said, it would be through a combination of strategic investments, internal accruals and an initial public offer (IPO) at a later stage.

Advertisement

Hyderabad Jan. 23 Global Hospitals has firmed up expansion plans proposing investments to the tune of Rs 500 crore, to set up super speciality hospitals in Mumbai, Chennai, Kolkata, New Delhi and Bangalore by 2010.

The Hyderabad-based specialist transplant surgery hospital group has recently opened its Rs 150-crore BGS Global Super Speciality Hospital in Bangalore, on a 50-acre land of BGS Health and Education City.

In Mumbai, the group will develop a 250-bed hospital with an investment of Rs 100 crore. The Maharastra Government has given the necessary land on a 99-year lease, said Dr K. Ravindranath, Managing Director.

In Kolkata also a 500-bed hospital, with an investment of Rs 150 crore in phase-I, has been planned. The West Bengal Government has allotted land near the Salt Lake City and work would begin soon, he told newspersons here on Tuesday.

Funding

Asked on the strategy to raise necessary funds, Mr Ravindranath said, it would be through a combination of strategic investments, internal accruals and an initial public offer (IPO) at a later stage. Already talks are in an advanced stage with a US-based, high networth individual, who would be coming in as a strategic investor for the Kolkata and Mumbai projects.

The Chief Financial Officer (CFO), Mr Sekhar, said in the next three years the turnover from Mumbai, Bangalore, Hyderabad would be around Rs 300 crore.

After the Kolkata and New Delhi hospitals are also completed, the turnover should touch Rs 500 crore per annum. Currently, Global Hospitals has a turnover of Rs 50 crore.

It is looking at the acquisition route in Chennai and a joint venture in New Delhi. In Hyderabad, it is planning a second hospital between the upcoming international airport in Shamshabad and the city. Plans are to grow to a total bed strength of 5,000, after expansion, he said.